What are the requirements to test for CPA?

Question

And what is the general job outlook for accountants these days?

Answer 1

According to the U. S. Bureau of Labor statistics - Occupational Outlook Handbook: http://www.bls.gov/oco/ocos001.htm

Education

Professional recognition through certification or licensure provides a distinct advantage in the job market. CPAs are licensed by a State Board of Accountancy. The vast majority of States require CPA candidates to be college graduates, but a few States substitute a number of years of public accounting experience for a college degree.

As of early 2005, on the basis of recommendations made by the American Institute of Certified Public Accountants (AICPA), 42 States and the District of Columbia required CPA candidates to complete 150 semester hours of college coursework—an additional 30 hours beyond the usual 4-year bachelor’s degree. Another five States have adopted similar legislation that will become effective between 2006 and 2009. Colorado, Delaware, New Hampshire, and Vermont are the only States that do not require 150 semester hours. In response to this trend, many schools have altered their curricula accordingly, with most programs offering master’s degrees as part of the 150 hours, so prospective accounting majors should carefully research accounting curricula and the requirements of any States in which they hope to become licensed.

All States use the four-part Uniform CPA Examination prepared by the AICPA. The 2-day CPA examination is rigorous, and only about one-quarter of those who take it each year pass every part they attempt. Candidates are not required to pass all four parts at once, but most States require candidates to pass at least two parts for partial credit and to complete all four sections within a certain period. The CPA exam is now computerized and is offered quarterly at various testing centers throughout the United States. Most States also require applicants for a CPA certificate to have some accounting experience.

The AICPA also offers members with valid CPA certificates the option to receive any or all of the Accredited in Business Valuation (ABV), Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS) designations. CPA’s with these designations may claim a certain level of expertise in the nontraditional areas in which accountants are practicing ever more frequently. The ABV designation requires a written exam, as well as the completion of a minimum of 10 business valuation projects that demonstrate a candidate’s experience and competence. The CITP requires payment of a fee, a written statement of intent, and the achievement of a set number of points awarded for business experience and education. Those who do not meet the required number of points may substitute a written exam. Candidates for the PFS designation also must achieve a certain level of points, based on experience and education, and must pass a written exam and submit references.

Nearly all States require CPAs and other public accountants to complete a certain number of hours of continuing professional education before their licenses can be renewed. The professional associations representing accountants sponsor numerous courses, seminars, group study programs, and other forms of continuing education.

JOB OUTLOOK:
Employment of accountants and auditors is expected to grow faster than average for all occupations through the year 2014. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation.

As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information developed by accountants and auditors regarding costs, expenditures, and taxes will increase as well. An increased need for accountants and auditors will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. The growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions. These trends should create more jobs for accountants and auditors.

As a result of accounting scandals at several large corporate companies, Congress passed legislation in an effort to curb corporate accounting fraud. This legislation requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of their financial reporting. It also holds the company’s chief executive personally responsible for falsely reporting financial information.

These changes should lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. In order to ensure that finances comply with the law before public accountants conduct audits, management accountants and internal auditors increasingly will be needed to discover and eliminate fraud. Also, in an effort to make government agencies more efficient and accountable, demand for government accountants should increase.

Increased awareness of financial crimes such as embezzlement, bribery, and securities fraud will increase the demand for forensic accountants, to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and they are on the rise. At the same time, the development of new computer software and electronic surveillance technology has made tracking down financial criminals easier, thus increasing the ease with which, and likelihood that, forensic accountants will discover their crimes. As success rates of investigations grow, demand also will grow for forensic accountants.

The changing role of accountants and auditors also will spur job growth, although this growth will be limited as a result of financial scandals. In response to demand, some accountants were offering more financial management and consulting services as they assumed a greater advisory role and developed more sophisticated accounting systems. Because Federal legislation now prohibits accountants from providing nontraditional services to clients whose books they audit, opportunities for accountants to offer such services could be limited. However, accountants will still be able to advise on other financial matters for clients that are not publicly traded companies and for nonaudit clients, but growth in these areas will be slower than in the past. Also, due to the increasing popularity of tax preparation firms and computer software, accountants will shift away from tax preparation. As computer programs continue to simplify some accounting-related tasks, clerical staff will increasingly handle many routine calculations.

Overall, job opportunities for accountants and auditors should be favorable. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined; however, enrollment is slowly beginning to grow again as more students become attracted to the profession because of the attention from the accounting scandals. Those who earn a CPA should have excellent job prospects. However, many accounting graduates are instead pursuing other certifications, such as the CMA and CIA, so job prospects may not be as favorable in management accounting and internal auditing as in public accounting. Regardless of specialty, accountants and auditors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master’s degree in accounting, or a master’s degree in business administration with a concentration in accounting, also will have an advantage. In the aftermath of the accounting scandals, professional certification is even more important in order to ensure that accountants’ credentials and ethics are sound.

Proficiency in accounting and auditing computer software, or expertise in specialized areas such as international business, specific industries, or current legislation, may be helpful in landing certain accounting and auditing jobs. In addition, employers increasingly are seeking applicants with strong interpersonal and communication skills. Because many accountants work on teams with others from different backgrounds, they must be able to communicate accounting and financial information clearly and concisely. Regardless of one’s qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.



Earnings

Median annual wage and salary earnings of accountants and auditors were $50,770 in May 2004. The middle half of the occupation earned between $39,890 and $66,900. The top 10 percent of accountants and auditors earned more than $88,610, and the bottom 10 percent earned less than $32,320. In May 2004, median annual earnings in the industries employing the largest numbers of accountants and auditors were as follows:

Federal executive branch and United States Postal Service $56,900
Accounting, tax preparation, bookkeeping and payroll services 53,870
Management of companies and enterprises 52,260
Local government 47,440
State government 43,400


According to a salary survey conducted by the National Association of Colleges and Employers, bachelor’s degree candidates in accounting received starting offers averaging $43,269 a year in 2005; master’s degree candidates in accounting were offered $46,251 initially.

According to a 2005 salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, accountants and auditors with up to 1 year of experience earned between $28,250 and $45,000 a year. Those with 1 to 3 years of experience earned between $33,000 and $52,000. Senior accountants and auditors earned between $40,750 and $69,750, managers between $48,000 and $90,000, and directors of accounting and auditing between $64,750 and $200,750. The variation in salaries reflects differences in size of firm, location, level of education, and professional credentials.

In the Federal Government, the starting annual salary for junior accountants and auditors was $24,677 in 2005. Candidates who had a superior academic record might start at $30,567, while applicants with a master’s degree or 2 years of professional experience usually began at $37,390. Beginning salaries were slightly higher in selected areas where the prevailing local pay level was higher. Accountants employed by the Federal Government in nonsupervisory, supervisory, and managerial positions averaged $74,907 a year in 2005; auditors averaged $78,890.

Answer 2

In my experience accountanting is a growing field right now, the last couple companies I've been with have had trouble holding onto accountants, that is an indication they are leaving for more money/better positions.

You used to only need an associates, however it was considered almost impossible for an AA holder to pass, usually you would want the bachelors at that time. However it was recently phased over time to masters! You now need a masters in business with the accounting emphasis to sit for CPA. However not all accountants are CPAs, my sister only has bachelors and no CPA, and she has been an accountant for about 6 years now.